You remember Dick Young’s North Star, also known as the 3-month T-bill, is often called the “risk free rate.” Now, nothing has zero risk, but the T-bill yield today is 3.64%. Which is better than the zero percent your Lazy Cash is earning while uninvested. You know what needs to be done. Why, then, do you still have that good-for-nothing Lazy Cash sitting around on your couch doing nothing?
Because when markets are up, you feel like saying: What do you want from life, Lazy Cash? You can’t keep eating my food, paying no rent, and think this is how you’re going to live the rest of your life.
A few weeks go by…stocks are down.
You’re on the couch again with guess who, and your tone has changed. Everyone you know is losing money, selling until they can sleep. You’re happy.
“What do you want to watch tonight, Lazy Cash? A movie? Can I make you some popcorn?” Aren’t we smart, you think.
Then, a year goes by and…it’s a banner year for markets, and guess what? You know who is still on your couch.
Rinse and repeat.
Look, I get it. I’m Your Survival Guy. I’ve spent a working lifetime seeing this story play out over and over. I’ve spent countless hours studying Richard C. Young’s Intelligence Report, and I know the most important words from each issue are: Make it A Good Month. And the straw that stirs that drink is the word Make.
You make the money. Because you can hope and wish until you’re blue in the face that your Lazy Cash goes on to live a productive and worthwhile life, but in the end it’s up to you to make it happen. That’s why Your Survival Guy ends all his posts with an “Action Line,” because until you take action and make it happen, it doesn’t mean a thing.
Action Line: Beat that mighty foe called inertia. Consider how much cash you need for emergencies and to sleep well at night. Then develop a well-crafted strategy to make some money. For a Lazy Cash intervention email Your Survival Guy: ejsmith@yoursurvivalguy.com.
